Marubeni’s wholly-owned subsidiary Ravva Oil (Singapore), along with other joint venture (JV) partners, has agreed with the Government of India to extend the production sharing contract (PSC) for the Ravva oil and gas field.
The PSC, which was due to expire in 2019, has been extended for the next ten years. The PSC’s term was first executed in October 1994.
The Ravva oil and gas field is located in the shallow offshore area of the Krishna-Godavari basin on the eastern coast of India and lies in Block PKGM-1. It is approximately 460km northeast of Chennai.
The field was initially estimated to produce 100 million barrels of crude oil. It has, however, produced more than 225 million barrels until 2011. With a water depth of approximately 10m to 15m, the field has eight offshore platforms, one export terminal, four tanks as well as onshore processing facilities.
According to Marubeni, the oil and gas produced from the Ravva field enters the country’s domestic market through refineries and the gas authority firm.
Partners in the field include Oil and Natural Gas Corporation (ONGC), Videocon Industries, Vedanta and Marubeni. Vedanta, through its division Cairn Oil & Gas, operates the field with a 22.5% stake, while ONGC owns 40%, Videocon owns 25% and Marubeni holds the remaining 12.5% ownership in the field.
Through the Ravva field, the JV partners aim to improve energy access in India, contributing to the development of local communities.
The extension will enable the partners to drill additional wells under a field development plan (FDP) to enhance the oil and gas recovery from the asset.